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CGWC Partner, Melvin B. Wright, testified yesterday in opposition to a Florida House of Representatives Bill proposed by Representative Bill Hager of Delray Beach, Florida. In our view, the proposed bill immunizes companies who really control the budget and operations of nursing homes by limiting lawsuit defendants in nursing home cases to license holders and their management companies. Most nursing homes are actually operated by a maze of legal entities and private equity interests that hold no license but organize under-capitalized shell entities to hold the actual license to the facility. Those profiting from the operation, therefore, would not have to be held accountable for abuse, neglect or negligent harm to residents, no matter how egregious. This is wrong. It is especially outrageous since most nursing homes in Florida are either uninsured or woefully underinsured and there is no statute or regulation requiring any minimum level of financial responsibility to victims of abuse or neglect. Tractor trailers and some professionals and other industries are required to carry minimum levels of liability insurance in order to get licenses and permits to do business. Why not nursing homes who profit from Medicare and Medicaid tax dollars?
To view the testimony, click on this link and on the March 6 video and Mr. Wright’s testimony begins at 3:16-17 on the video time scale.